Final answer:
To build a positive credit history and a high credit score, pay bills on time, keep credit utilization low, and avoid opening too many accounts. Credit score affects the home-buying process, with lenders considering it for loan eligibility and interest rates. Affordability is determined by income, expenses, and debt-to-income ratio.
Step-by-step explanation:
To build and maintain a positive credit history that leads to a high credit score, there are several steps you can take. First, make sure to pay your bills on time, as payment history is a major factor in determining your credit score. Second, keep your credit utilization low by only using a small percentage of your available credit. Third, avoid opening too many new accounts at once, as this can negatively impact your score. To improve your credit score, you can also review your credit reports for errors and dispute any inaccuracies. Finally, if your friend is hoping to buy a home in the next few years, it's important for them to know that their credit score plays a significant role in the home-buying process. Lenders will consider their credit score to determine their eligibility for a mortgage loan and the interest rate they qualify for. To determine what is affordable, your friend should consider their income, expenses, and debt-to-income ratio.